UK stock market morning note (January 15, 2014)

The FTSE 100 is called to open higher this morning following the performances overnight on Wall Street and in Asia although gains may be limited as investors look ahead to more data news for direction. Today's economic diary is dominated by the US with the publication of producer prices and the Empire State manufacturing index followed by a speech by Mark Carney the Bank of England Governor. This evening also sees the release at 7.00pm UK time of the US Beige Book. Commodity prices are flat to lower and on the foreign exchanges, the pound is mixed against both the dollar and the euro but all are within narrow trading ranges.

Company Announcements

Tullow Oil Trading Statement reports that the 2013 financial results are expected to see total revenue of USD2.6bn, gross profit of USD1.4bn and operating cashflow of USD1.9bn, reflecting growth in production and stable oil and gas prices. Over 200 mmboe of Contingent Resources were added in 2013 but not all wells were successful and it expects a net write off of USD405m in relation to 2013 exploration and USD325m for prior years exploration activities. In West Africa, Jubilee field production averaged 100,000 bopd for 2013 and it estimates production will average the same again this year. In East Africa, Tullow has today separately announced oil discoveries at Amosing-1 and Ewoi-1 onshore Kenya and increased discovered resources for the basin to over 600mmbo. It added that group working interest production for 2013 averaged 84,200 boepd and production guidance for this year is 79,000 to 85,000 boepd, this forecast accounting for the sale of its Bangladesh assets. It expects to deliver over 200 mmboe in 2014 and will drill in excess of 40 wells in the next 18 months.

Burberry IMS/Q3 Trading Update reports that for the 3 months to end December 2013, retail revenue rose 14% to GBP528m with comparable sales up 12%, noting that the latter was in line with its expectations. It added that at current levels, exchange rates will be a 'significant headwind' in H2 and beyond and the macro environment remains uncertain, but was confident that it will continue to deliver long term value for shareholders.

Taylor Wimpey Trading Statement reports that in the UK total home completions rose 7% to 11,696 with average selling prices up 7% to GBP210,000. The total order book as at 31 December 2013 stood at GBP1.2bn, an increase in value of 27%. In Spain the business will again make a small profit. It noted that group operating margin will be towards the upper end of its expectations and it ended the year with a marginal net cash position. It added that it entered 2014 with improved margins and pricing with visitors and reservations remaining high.